Question

Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May. Estimated inventory (units), May 1 30,000 Desired inventory (units), May 31 25,000 Expected sales volume (units): South region 20,000 West region 40,000 North region 20,000 Unit sales price $10 a.85,000 b.105,000 c.75,000 d.80,000

Answer 1

Answer:

Production= 75,000 units

Explanation:

Giving the following information:

Estimated inventory (units), May 1 30,000

Desired inventory (units), May 31 25,000

Expected sales volume (units):

South region 20,000

West region 40,000

North region 20,000

To calculate the production for May, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= (20,000 + 40,000 + 20,000) + 25,000 - 30,000

Production= 75,000 units